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Suppose an asset's value in one year may be 100 and 140 with half-half chance. The total risk of the market portfolio is 400% and

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Suppose an asset's value in one year may be 100 and 140 with half-half chance. The total risk of the market portfolio is 400% and the market price of risk is 30%. The risk-free rate is 20%. If the asset's beta is 50%, determine its price. [10 marks]

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